Currencies

Books for the Republic of Slovenia’s triple tranche euro bond tap were in excess of €3.6bn by lunchtime on Wednesday, with final spreads having been set for each clip. The deal is part of a liability management exercise that swaps out short dated dollar debt for longer euro denominated paper.

Gazprom made its sixth appearance in the Swiss franc bond market on Wednesday, but for only the first time as an investment grade credit after S&P upgraded its rating. Institutional investors, which only buy bonds that are eligible for the Swiss Bond Index, piled into the transaction, pushing pricing down and the size up.

Seven investment grade corporate deals in the first three days of this week kept investors busy doing their credit work, but the lack of new issue volume has left investors still hungry for more.

Hong Kong-listed LK Technology Holdings has divvied up its latest borrowing among 14 lenders.

The perception of the Swiss investor as exhaustively prudent is becoming ever more inaccurate. With borrowers of all stripes making inroads into the Swiss franc bond market, and buyers receptive to credits from across the world, the natives are more intrepid than other markets give them credit for.

Three public sector borrowers hit screens in euros on Tuesday, taking advantage of a hot market to offer zero or limited new issue premiums.

Five new investment grade corporate bond deals were priced on Tuesday and, while pricing was competitive, none of the issuers allowed for any growth in the size of the deals as all five used a no-grow strategy.

The Commercial Bank of Qatar debuted in Swiss francs on Tuesday, selling three year bonds to ‘the who’s who’ of the Swiss franc bond market, according to a banker on the deal. CBQ’s trade is the best illustration yet of Swiss investors growing more comfortable with Middle Eastern financial credit.

Bank of China, Industrial and Commercial Bank of China and Industrial Bank Co have raised close to $3.7bn from eight fixed and floating rate tranches in three currencies. But most of the portions had to offer a new issue premium, which ranged from a few basis points to as much as 15bp.

The Kingdom of Belgium hit the market on Monday with its long awaited first green OLO. The sovereign received strong demand for the deal, tightening its spread by 3bp and pulling in a book of €12.7bn.

The European Union’s upcoming April 2033 euro benchmark may have to offer a little more premium than usual if it wants to match a similar trade from the European Investment Bank last week and attract strong French demand, said bankers away from the mandate. Other euro supply in the pipe includes CPPIB Capital — also with a 2033 issue — and Rentenbank in sevens.

French electrical equipment manufacturer Legrand used the same no-grow approach as on its previous two deals for the only new issue in the investment grade corporate bond market on Monday.